NEW DELHI: The Income Tax Department has detected huge unaccounted income after it raided some Indian companies and their associates, being controlled by a neighbouring country, in Delhi, Maharashtra and Gujarat, the CBDT said on Thursday.
The searches were carried out on November 16 on at least 20 premises in Mumbai, Ahmedabad and Gandhidham in Gujarat and in Delhi.
Those searched are engaged in the business of chemicals, ball bearings, machinery parts, and injection moulding machinery.
The Central Board of Direct Taxes (CBDT) said in a statement that Rs 66 lakh cash was seized while bank accounts holding about Rs 28 crore funds have been put under restraint.
"A large number of incriminating evidence in the form of digital data showing earning of huge unaccounted income by these companies has been seized and it has been found that these companies are indulging in tax evasion through manipulation of books of accounts," the CBDT claimed.
The CBDT frames policy for the Income Tax department.
"These companies have indulged in transferring funds by using a network of shell companies to a neighbouring country."
"An estimated amount of Rs 20 crore was transferred in the last two years through the above modus operandi," it said.
The tax officials found that a Mumbai-based professional firm not only assisted in the formation of these shell companies but also provided dummy directors to these shell companies.
"These dummy directors were either the employees/drivers of the professional firm or they were persons of no means."
"On questioning, they admitted that they were not aware of the activities of these companies and that they had been signing on documents according to the instructions of the key functionaries," it said.
The statement said the firm was also instrumental in assisting the foreign nationals by providing its addresses for banking and other regulatory requirements.
"One of such companies trading in chemicals was found to be routing the claim of purchases through Marshall Island, a low tax jurisdiction."
"The company actually purchased items worth Rs 56 crore from a neighbouring country but the same has been billed from Marshall Island," it said.
However, it added, payment for such purchases has been made into the bank account of the Marshall Island-based company which is held in the neighbouring country.
The CBDT said the Indian company was also involved in taking "non-genuine purchase bills to reduce its tax liability and also paid unaccounted cash for purchase of land in India."